PPOR currently in wife’s name, however I intend to purchase it and then develop. Will be much easier to get finance for construction that way.
I understand there is no stamp duty in Victoria i.e. can be transferred “for love and affection”. Is this only the case if the land is transferred rather than bought at fair market value?
From a CGT and cost base perspective, does it make any difference whether the land is “transferred” or “bought” for stamp duty purposes?
You wouldn’t want to transfer it for love and affection as you wouldn’t be able to claim any interest. Asset protection issues too. You need to buy it for full market value.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry – so if I buy for Market Value (per the ATO’s Market valuation for tax purposes provisions and Spencer v C’wealth 1907) for tax purposes, does this trigger Vic stamp duty.
Or are they separate ideas i.e. love and affection for stamp duty and market value for CGT?
s43 Duties act – no mention of love
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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